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7 minutes ago, The Spaniard said:

Today's inflation figures in May from the ONS: CPI 2.9% and RPI 3.7%.

Student debt now accumulating interest charges at 6.7% p.a.

Ouch.

It is not a peak yet, CPI MoM annualised inflation is around 4%-5% 

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12 minutes ago, The Spaniard said:

Today's inflation figures in May from the ONS: CPI 2.9% and RPI 3.7%.

Student debt now accumulating interest charges at 6.7% p.a.

Ouch.

The only savings keeping pace with that risk free are NS and I I/L certs at 3.71% or 3.75% dependent on the issue. Shame we can only roll them over these days.

First time in my lifetime savers are being shafted. These things were even going during the 70s when prices nearly quadrupled.

Edit.......

Sorry Clarky Cat I posted simultaneously....both thinking the same yhing

Edited by crashmonitor

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17 minutes ago, The Spaniard said:

Student debt now accumulating interest charges at 6.7% p.a.

This is a joke. The nation is just robbing its children blind.

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Meanwhile what is a saver supposed to do. I do have about a sixth of my money in NSand I and the rest earning virtually nothing except for a few unexpired fixes the best of which only makes 3%.

A bit bearish on Equity just now. 

Guess I should have bought an expensive house instead because fiat appears to be evaporating.

Edited by crashmonitor

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14 minutes ago, Clarky Cat said:

Allowing NS&I index linked bonds to roll over definitely looking like a thing to have done now, even @ RPI + 0.05%!

Oh yes. Got about £38k at 3.7%. Not bad.

Bet they knobble these again soon.

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6 minutes ago, Errol said:

This is a joke. The nation is just robbing its children blind.

Or may be the third party finance companies robbing the Nation blind. Because 80% of the loan will fall back on the Nation not the children.

 

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1 minute ago, shindigger said:

Oh yes. Got about £38k at 3.7%. Not bad.

Bet they knobble these again soon.

What a shocking state of affairs when a 0.01% or 0.05% return is cause for celebration. And indeed I reckon they will only be happy when savers are losing on all risk free returns.

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So let's get this right.

You leave uni owing 30k

Interest rate is 6.7 percent 

So the debt goes up by 2k a year or 210 per month

So you will have to pay over 2.5 k a year to get the loan to go down .

Crazy

 

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1 minute ago, nnails said:

So let's get this right.

You leave uni owing 30k

Interest rate is 6.7 percent 

So the debt goes up by 2k a year or 210 per month

So you will have to pay over 2.5 k a year to get the loan to go down .

Crazy

 

More like 50k in debt these days and - hypothetically - if inflation stayed at that rate for the duration of the loan period (25 years iirc), and the person who took it out never earn enough money to start paying it back, the liability on a balance sheet somewhere in 25 years will be over a quarter of a mill!

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1 hour ago, The Spaniard said:

Today's inflation figures in May from the ONS: CPI 2.9% and RPI 3.7%.

Student debt now accumulating interest charges at 6.7% p.a.

Ouch.

Given that it was allowed to go all the way up to 5.2% in 2011 with absolutely no effort to use IRs to curtail it, I'm not holding my breath this time.

http://www.bbc.co.uk/news/business-15344297

I'm keeping the bulk of my sterling in Premium Bonds, no counter-party risk and near-instant availability of funds.  The banks are offering risible rates to savers so the loss of potential interest is more than offset by the reduced risk, IMO.

Feel sorry for the students, they are being absolutely shafted.  Forced to take on tens of thousands of debt to get a third level education (which was free to my generation) with very uncertain prospects when they graduate.

 

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Guess this explains why more people are looking at ethereum and bitcoin. I am going the other way - where the hell is good for money that is reasonably safe?!

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Three articles in today's press...interesting times...an expert calls for tightening of consumer credit (yeah right), governor indicates it is to abandon the lie that they are to borrow less and a leading credit rating agency states the obvious that the UK's rating is sliding down the sluice....

Regulators should look to rein in Britain's credit binge

Patrick Hosking writes in the Times that banks and credit card companies should look to rein in their generosity on consumer credit. If they do not, he states, then regulators should force them to do so. He contends that how regulators decide to end, or prolong, the current credit binge could be a key test for the economy.

The Times, Page: 45

May tells Tories: 'Austerity is over'

The Times reports that Theresa May is planning to abandon the government's austerity programme after Conservative MPs warned that they would refuse to vote for further cuts. Sources said the PM accepted that voters' patience with austerity was at an end after a series of Tory MPs told her that she had misjudged the public mood.

The Times, Page: 1

Election result casts doubts over UK's credit rating

Moody's has warned that Britain's credit rating could be downgraded following the general election. The ratings agency said the lack of a decisive majority party could stall negotiations on Britain leaving the EU, which would have a negative impact on the UK's credit rating.

The Daily Telegraph, Business, Page: 5   Independent I, Page: 40

 

 

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A bit of everything if you want to be diversified. Some bitcoin (crypto stuff) if you are that way inclined, premium bonds, some cash (outside the banking system), gold/silver and other precious metals etc.

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5 minutes ago, LC1 said:

What are the advantage of premium bonds, security wise?

No Much reduced counter party risk (your counter party is the government, not a bank promising to pay you government credit notes).  Governments are a lot less risky than the banks and can - and will - print actual money as needed.

Edited by Sour Mash
correction

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8 minutes ago, LC1 said:

What are the advantage of premium bonds, security wise?

WTSHTF you can use them to start a fire and keep warm in the freezing winter.

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6 minutes ago, Sour Mash said:

No Much reduced counter party risk (your counter party is the government, not a bank promising to pay you government credit notes).  Governments are a lot less risky than the banks and can - and will - print actual money as needed.

Aha, thanks. Suspected it was along those lines.

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1 minute ago, Tiger131 said:

WTSHTF you can use them to start a fire and keep warm in the freezing winter.

Ha, can't do that with gold, can you?!

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13 minutes ago, Errol said:

A bit of everything if you want to be diversified. Some bitcoin (crypto stuff) if you are that way inclined, premium bonds, some cash (outside the banking system), gold/silver and other precious metals etc.

I agree, although annoyingly one tends to have larger chunks of cash in the more fluid parts of ones assets. And it is painful watching that effectively being stolen by the inflation tax! :(

I also agree with Sour Mash that there's a cat in hells chance that IR's will be raised in this cycle, if anything more NIRP will be applied!

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3 minutes ago, Noginthenog said:

I agree, although annoyingly one tends to have larger chunks of cash in the more fluid parts of ones assets. And it is painful watching that effectively being stolen by the inflation tax! :(

I also agree with Sour Mash that there's a cat in hells chance that IR's will be raised in this cycle, if anything more NIRP will be applied!

Almost certainly some sort of big 'stimulus' on the way to be paid for by even more QE, which will also be needed to keep bond yields low and of course, interest rates repressed.

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